1.On December 31, 2011, the current receivables of Floyd Corporation consisted of the following:

Trade accounts receivable P1,200,000

Allowance for uncollectible accounts (100,000)

Claim against shipper for goods lost in transit (October 2011) 50,000

Selling price of unsold goods sent by Floyd on consignment at 125% of cost (not 300,000 included in Floyd's ending inventory)

Security deposit on lease warehouse used for storing some inventories 200,000

What is the correct total of current net receivables on December 31, 2011?

a.P1,150,000 c.P1,350,000

b.P1,390,000 d.P1,650,000

2.When examining the accounts of Calauit Island Corporation, it is ascertained that balances relating to both receivables and payables are included in a single controlling account called receivables control that has a debit balance of P485,000.An analysis of the make-up of this account revealed the following:

Accounts receivable-customers P780,000 Accounts receivable-officers 50,000 Postdated checks from customers 40,000 Subscriptions receivable 80,000

Debit balances-creditors 30,000

Accounts payable for merchandise purchased P450,000 Credit balances in customers' accounts 20,000

Cash received in advance from customers for goods not yet 10,000 shipped

Expected bad debts 15,000

After further analysis of the aged receivable, it is determined that the allowance for doubtful accounts should be P20,000.What is the correct total of current net receivables?

a. P860,000

b.P880,000

c.P885,000

d.P895,000

3. On December 31, 2009 balance sheet of Quirino Company, the receivables consisted of the following:

Trade accounts receivable P93,000

Allowance for uncollectible accounts (2,000)

Claim against shipper for goods lost in transit Dec. 1, 2009 3,000Selling price of unsold goods sent by Quirino on consignment at P30% 26,000of cost.The related inventory was excluded in Quirino's ending inventory.

Security deposit on the lease of a warehouse used for storing some 30,000 inventories.

Total P150,000

How much should be reported as trade and other receivables in Quirino's December 31, 2009 balance?

a. P150,000

b.P120,000

c.P94,000

d.P68,000

4. Qurino Company had the following information relating to its accounts receivable for the year 2009:

Accounts receivable, Jan. 1 P12,000,000

Credit sales 20,000,000

Collection from customers, excluding the recovery of accounts written 17,000,000 off

Accounts written off as worthless 300,000

Sales return 1,000,000

Recovery of accounts written off 100,000

Estimated future sales returns on December 31 400,000

Estimated uncollectible accounts on Dec. 31, per aging 1,000,000

Quirino should report the December 31, 2009 accounts receivable before allowance for sales returns and uncollectible accounts at

a.P12,300,000

b.P13,130,000

c.P13,700,000

d.P13,800,000

5. The following data relate to accounts receivable of Lesner Company for 2009:

Accounts receivable, 1/1 P1,500,000

Credit sales 7,000,000 Sales returns 200,000

Accounts written off 100,000

Collections from customers 4,500,000 Estimated future sales returns, 12/31 300,000

Estimated uncollectible accounts per aging, 12/31 400,000

What amount should Lesner report as net realizable value of accounts receivable at December 31, 2009?

a. P3,700,000

b.P3,300,000

c.P3,100,000

d.P3,000,000

Allowance for Doubtful Accounts/Net Realizable Value

6.Cordon Company provides for doubtful accounts based 3% of credit sales.The following data are available for 2009

Credit Sales 2009

P21,000,000

Allowance for doubtful accounts 1/1/09

170,000

Collection of accounts written off in prioryears (customer credit was reestablished)

80,000

Customer accounts written off as uncollectible during 2009

300,000

What is the balance in allowance for doubtful accounts at Dec. 31, 2009?

7.The following accounts were taken from Cordon Corporation's balance sheet at Dec. 31, 2009

Debit

Credit

Accounts receivable

P4,100,000

Allowance for doubtful accounts

100,000

Net credit sales

7,500,000

If doubtful accounts are 3% of accounts receivable, determine the bad debt expense to be reported for 2009.

Accounting for Discounts

8. LP Company sold an item on credit for P5,000,000 less multiple trade discounts of 20% and 5%.The correct entry to record

this sale is -

a.Accounts Receivable 5,600,000Trade Discount 1,200,000

Sales 5,000,000

Output Tax 600,000

Allowance for Sales Discount 1,200,000

b.Accounts Receivable 4,180,000

Sales 3,800,000

Output Tax 380,000

c.Accounts Receivable 4,180,000

Sales Discount 1,200,000

Sales 5,000,000

Output Tax 600,000

d.Accounts Receivable 4,256,000

Sales 3,800,000

Output Tax 456,000

Non-Interest Bearing Note

9.Sta. Ana Corporation has P3,000,000 note receivable from sale of plant bearing interest at 12% per annum.The note is dated June 1, 2008.The note is payable in three annual installments of P1,000,000 plus interest on the unpaid balance every June

1.The initial principal and interest payment was made on June 1, 2009.What is the interest income for 2009?

a. P140,000

b.P210,000

c.P290,000

d.P300,000

10.On December 31, 2010, Bohol Company received two P2,000,000 notes receivable from customers in exchange for services rendered.On both notes, interest is calculated on the outstanding principal balance at an annual rate of 2%.The note from ABC Company, made under customary trade terms is due in 9 months including interest and the note from XYZ Company is due in five years with the interest payable annually on December 31, 2011 and every December 31 thereafter.The market interest rate for similar notes on December 31, 2010 is 10%.The present value factors at 10% are:

Present value of P1 due in 9 months 0.930

Present value of P1 due in five years 0.621

Present value of an ordinary annuity for five years3.791

Present value of an annuity due for five year 4.170

At what amount should these two notes receivable be reported in Bohol's Dec. 31, 2010 balance sheet?

ABCXYZ

a.P2,000,000 P1,366,200

b.P2,000,000 P1,393,640

c.P1,860,000 P1,366,200

d.P1,860,000 P1,393,640

Receivable Financing

Assignment

11. On August 1, Samuel Corporation assigned P20,000 of its P56,000 of accounts receivable. The finance company advanced 90% of the assigned accounts less a P2,000 fee. Interest is 12% and payable monthly on the beginning-of-period loan balance. A loan payment is remitted at the end of each month. Each payment includes principal and interest. The amount of each loan payment equals the cash collected on receivables during the month plus interest on the loan balance.

If P8,000 was collected on accounts receivable during August, the entry for the first loan payment would include a a. debit to Interest Expense of P180.

b.credit to Cash of P8,000.

c.credit to Account Receivable Assigned of P8,000.

d.debit to Notes Payable of P8,180.

Factoring

12. On December 31, 2009, Teodoro Corporation needed cash for its working capital expenditures.Teodoro sold P2,000,000 on a non-recourse basis accounts receivable to a factor for 80% of its face value.Teodoro maintains an allowance for doubtful accounts of P100,000 on the accounts receivable sold.The bank withheld 10% of the purchased price as protection against any future returns of merchandise.In addition, the factor charged a service fee of 2% of the accounts receivable.Returns against the factored receivables upon final settlement totaled P30,000.How much loss from factoring should Teodoro recognize as a result of the above transactions?

a.P370,000

b.P340,000

c.P440,000

d.P300,000